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Key Takeaways

• Bank OZK declared a $0.44 dividend, marking its 21st hike in five years and yielding 3.38%.
• Lindsay Corp announced a $0.37 dividend, recording five increases in five years and a 21% payout ratio.
• Sandstorm Gold raised its dividend to $0.02 per share, its seventh hike in five years, yielding 0.59%.

Wall Street has been on a rally driven by easing tariff fears and optimism surrounding a rate cut by the Federal Reserve in the coming weeks. The S&P 500 and Nasdaq hit fresh closing highs on Thursday, and investors seem optimistic that a rate cut could further boost stocks.

However, the Federal Reserve has yet to give any hint on when it will resume its rate cut. Additionally, geopolitical tensions in the Middle East, despite easing, continue to exist. These uncertainties could keep markets volatile for a longer period.

Given this situation, cautious investors looking for stable income and ways to protect their capital may consider holding onto or investing in dividend-paying stocks. These stocks can offer a reliable income stream through regular dividend payouts, while also providing a buffer against market volatility. Three such stocks are Bank OZK (OZK - Free Report), Lindsay Corporation (LNN - Free Report), and Sandstorm Gold Ltd. (SAND - Free Report).

Uncertainty Still Looms Large

Markets have been on a rally over the past couple of weeks as tariff woes and geopolitical tensions have eased substantially. President Donald Trump’s administration announced earlier this week that the United States and Vietnam have reached a trade deal. Vietnam, much like China, is a major production hub for several U.S. companies.

The announcement was cheered by investors, sending stocks on a rally. The Trump administration had earlier said that it reached a trade deal with China and the United Kingdom. Investors have also been hopeful that more trade deals will be reached ahead of the July 8 deadline on the 90-day halt on tariffs.

Although the news of trade agreements being reached with the trading partners lifted market sentiment, it remains to be seen how the new tariffs will impact the economy, as the White House has yet to give any clarity on this.

Moreover, optimism surrounding an anticipated rate cut in July has been fueling the ongoing market rally. However, Federal Reserve Chairman Jerome Powell has been maintaining a hawkish stance despite calls for a rate cut. Market participants are expecting two 25-basis-point rate cuts by the end of this year, but the Federal Reserve has not yet given a timeline, which may dent investors’ sentiment at any time.

3 Stocks That Recently Announced Dividend Hikes

Presented below is a brief look at the previously-mentioned stocks.

Bank OZK

Bank OZK conducts operations through 232 offices in nine states, including Arkansas, Georgia, Florida, North Carolina, Texas, Tennessee, California, New York, and Mississippi. Bank OZK offers a wide range of retail and commercial banking services to businesses, individuals, and non-profit and governmental entities. Bank OZK has a Zacks Rank #3 (Hold) rating.

On July 1, Bank OZK announced that its shareholders would receive a dividend of $0.44 a share on July 18. Bank OZK stock has a dividend yield of 3.38%. Over the past five years, Bank OZK has increased its dividend 21 times, and its payout ratio presently sits at 28% of earnings.

Lindsay Corporation

Lindsay Corporation provides a variety of proprietary water management and road infrastructure products and services. Lindsay Corporation maintains corporate offices in Omaha, NE. The company has been operating since 1955 and is one of the pioneers in the automated irrigation industry. Lindsay Corporation stock has a Zacks Rank #3 (Hold) rating.

On June 27, Lindsay Corporation announced that its shareholders would receive a dividend of $0.37 a share on August 29. The stock has a dividend yield of 0.98%. Over the past five years, Lindsay Corporation has increased its dividend five times, and its payout ratio presently sits at 21% of earnings.

Sandstorm Gold Ltd.

Sandstorm Gold Ltd. is a gold streaming company that provides upfront financing to gold mining companies. The company focuses on completing gold purchase agreements with gold mining companies that have advanced-stage development projects or operating mines. Sandstorm Gold carries a Zacks Rank #3 (Hold) rating.

On June 26, Sandstorm Gold announced that its shareholders would receive a dividend of $0.02 a share on July 25. The stock has a dividend yield of 0.59%. Over the past five years, Sandstorm Gold has increased its dividend seven times, and its payout ratio presently sits at 56% of earnings.

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